GameStop makes $55.5 billion bid to acquire eBay
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Several widely followed stocks, including GameStop, ranked among Monday’s largest bearish price surprises by volume. With GameStop pursuing an ambitious acquisition-driven strategy, the key question is whether these declines signal value—or bigger risk.
It’s not just in your head: GameStop’s pursuit of eBay doesn’t seem to make a lot of sense.
Retail traders online were pumped about the idea that Ryan Cohen's plan could turn GameStop into a next-era Berkshire Hathaway.
May 4 (Reuters) - Shares of U.S. online marketplace eBay jumped 10% but were well below GameStop's offer price in premarket trading on Monday, in a sign of doubts among investors that the $56-billion bid from the much smaller videogame retailer will succeed.
Burry exited fully because the eBay deal is a capital-structure break: ~ $20B new debt and debt-to-EBITDA ~7.7x turns “mini-Berkshire” into a leveraged conglomerate. The stock is already testing the 100-day MA;
GameStop's $56 billion bid for eBay ignited intense debate on social media, as retail investors greeted the potential deal with a mix of excitement, skepticism and meme-stock humor.